Yes. And if anyone tells you otherwise, they are either a builder's sales agent or they have never been through the process. The builder has a team of professionals working to protect the builder's financial interest at every stage of the transaction: their attorney wrote the contract, their lender wants to close the deal, and their agent is trained to sell you the home at the highest possible margin. Without your own representation, you are the only person at the table without an advocate.

Derrik Davis learned this firsthand when he built his own home in Barton Hills with Cobb Development. He became the project manager to ensure his home was built to spec was on-site daily, coordinating subcontractors and catching problems in real time. That experience revealed how many decisions get made during construction that directly affect the buyer's outcome, from material substitutions to grading and drainage choices that never appear in the original contract.

Here's a story that illustrates why this matters. A builder approached Derrik about a lot in one of 78704's established neighborhoods. The builder planned to purchase the property and construct two separate structures on a single lot. Derrik knew the neighborhood's deed restrictions prohibited that configuration. Instead of letting the builder walk into a legal problem after spending $1 million on theland, he reworked the plans to comply with the restrictions. That property eventually sold for over $5 million. Without Derrik's knowledge of the specific deed restrictions on that block, the builder would have either killed the deal or built something that violated the covenants.

New construction in Austin is not like buying an existing home. The contract is typically 30 to 50 pages of builder-favorable terms. The construction timeline, warranty provisions, upgrade pricing, and change order policies are all negotiable, but only if you have an agent who understands what to push back on. Walking into a builder's sales office without representation is like walking into a courtroom without a lawyer.

The best lots in 78704 rarely hit the MLS. They trade through personal relationships, neighborhood connections, and quiet conversations that happen months before a homeowner ever calls a listing agent. This is where Derrik's two decades in Austin real estate and his roots in Barton Hills create an advantage that no amount of marketing spend can replicate.

Derrik lives in Barton Hills with his family. He has been part of this community through school functions, neighborhood events, and the kind of relationships that form over years of shared life in a tight-knit area. When a longtime homeowner starts thinking about selling, Derrik often hears about it before the idea has fully formed. That's not a hypothetical scenario. He has sourced 14 to 15 off-market lots through exactly this process.

His first major builder partnership illustrates how this works in practice. When Cobb Development began looking for teardown opportunities in Barton Hills during the early stages of the COVID building boom, Derrik leveraged his neighborhood relationships to identify willing sellers. Cobb acquired 5 to 6 lots in a 6 to 7 month span, almost entirely through Derrik's off-market connections. Those lots never appeared on any public listing platform.

Another example: a lot in Zilker became available when friends of Derrik's reached out about selling. Rather than listing the property and waiting for the market to discover it, Derrik connected the sellers directly with a builder-investor he trusted. The deal closed as a cash transaction with demolition permits ready at closing, eliminating weeks of uncertainty and carrying costs for both parties. That kind of transaction only happens when the agent is genuinely embedded in the community, not just farming the zip code with mailers.

For buyers looking to build custom in 78704, access to off-market inventory is not a bonus feature. It is the primary acquisition channel. The neighborhoods are small, the desirable lots are finite, and the builders who consistently land the best parcels are the ones connected to an agent with real relationships on the ground.

The current market in Austin's 78704 zip code prices new construction at approximately $1,000 per square foot for a well-built custom home. That figure is down from the $1,100 to $1,200 per square foot that builders were achieving during the 2021-2022 peak, and it reflects a market that has corrected to more sustainable levels after the interest rate shock of mid-2022.

To understand the full cost picture, start with the land. Teardown lots in 78704's primary neighborhoods currently range from roughly $900,000 to $1.3 million depending on lot size, heritage tree coverage, and buildable footprint. During the peak, one lot in Barton Hills went to a bidding war that reached $1.725 million. The developer who paid that price planned to build and sell at $1,200 per square foot. When the market shifted, the finished home only brought $900 per square foot at sale. The loss was significant, and that story became a cautionary tale across 78704's builder community.

Value engineering has become essential for builders operating in the current market. The smart builders in 78704 have learned where to invest and where to save. Appliances are a prime example: Thermador, Bosch, and LG deliver excellent performance without the brand premium of Wolf or Sub-Zero. Andersen windows perform comparably to Western at a fraction of the cost. Quality prefabricated cabinetry from the right manufacturer functions as well as fully custom millwork for most residential applications. The savings from these choices get redirected to where they matter most: HVAC systems, fixtures and structural quality.

For a typical 3,500 to 4,500 square foot new construction home in 78704, buyers should budget $3.5 million to $5 million all-in, including land, hard costs, soft costs, and a reasonable contingency. Larger projects in the 6,000 to 7,000 square foot range push into the $6 million to $8 million territory depending on finish level and site conditions. Pre-wiring for home automation, including lighting control, security, audio, and EV charging, is standard at these price points.